What kind of fun is that?
Some would argue that health insurance companies are not entitled to any profit but where would that get you? Profit margins on health insurance are nominal in the grand scheme of things and many times the carriers lose money.
"Superintendent has noted that Anthem's done pretty well." Janet Mills is the Maine Attorney General who is representing the superintendent of insurance. Mills' office counters that Anthem averaged a 3.2 percent profit margin in its individual line of products for the nine years that the company has been in Maine. And that going a year without a profit from those products will not drain the company.
So if Anthem is denied a profit margin and they decide to pick up their bat and ball and go home, then what happens? The DOI can't FORCE Anthem to write insurance.
If they decide to quit, then what happens?
You should know that Anthem currently writes 71% of individual health insurance policies in the state so telling the 800 pound gorilla they can't earn a profit is a bit, well, stupid.
But then Maine is also home to Olympia Snowe who fancies herself as knowledgeable about health insurance but in truth is out of touch with what happens in her home state. Maine has painted themselves into a corner with their idiotic laws governing insurance that result in Maine having fewer carriers and plans and higher rates than almost any other state in the union. Yet many of the provisions in Obamacare that Ms. Snowe endorses are the driving forces behind the high cost of health insurance in Maine.
But back to Anthem . . .
IF the move to restrict Anthem's profit margin to 0% (and of course there is never any guarantee they will make ANY profit), and IF Anthem decides to continue to play then what does this mean for consumers in Maine?
Their premiums will be 3% lower next year.
Kind of like those $10 weekly tax cuts from Obamaland.
And the beat goes on . . .
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